P&H High Court - Authority has no power or jurisdiction to reduce the time period mentioned in the declaration

 In the Matter of M/S Parador Developers ... vs Real Estate Regulatory Authority RERA Appeal No.19 of 2020 decided on 27 November, 2020 before THE HIGH COURT OF PUNJAB AND HARYANA

Fact of the Matter

• Vide request dated 13.10.2017, the appellant sought permission for change of land use of an area measuring 93.265 acres for development of a residential colony. 
• The Department of Town and Country Planning, Punjab, granted permission for change of land use vide its memo dated 17.10.2017. 
• Consequently, an application for grant of licence was made to the Amritsar Development Authority, who, granted the licence vide its memo dated 13.06.2019. Licence period was 5 years ending on 12.06.2024. 
• Thus, application dated 10.09.2019 was filed before the Real Estate Regulatory Authority, Punjab (hereinafter referred to as the 'Authority) for registration of Phase-I of the residential colony under the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'the Act'). 
• A declaration in Form-B was also filed stating that the development 1 of 8 work would be completed on or before 12.06.2024. 
• Phase-I was registered but the validity thereof was reduced by one year i.e. upto 12.06.2023. 
• The appellant sought a clarification and vide memo dated 13.11.2019. 
• The Authority clarified that registration was uptill 12.06.2023 only as the group housing component was not being executed in Phase-I. 
• Thus, the appellant filed a statutory appeal before respondent No.2 but the same has been dismissed vide order dated 03.07.2020.  (This Order is published on this blog on 18.05.2021)
• Hence, the present appeal has been filed under Section 58 of the Act.

Order of the High Court 

 It is held that the Authority has no power or jurisdiction to reduce the time period mentioned in the declaration. If it feels that the period mentioned is arbitrary or unacceptable due to any reasons, a notice to show cause for rejection of the application must be given.

Supreme Court - High Court would be justified in admitting the second appeal only when a substantial question of law is involved

 In the case of Gurudev Kaur and others -vs- Kaki and others [(2007) 1 SCC 546, the Apex Court held that after the 1976 Amendment, the scope of Section 100 has been drastically curtailed and narrowed down, according to the amended section,

(i) The High Court would be justified in admitting the second appeal only when a substantial question of law is involved;

(ii) The substantial question of law to precisely state such question;

(iii) A duty has been cast on the High Court to formulate substantial question of law before hearing the appeal;

(iv) Another part of the Section is that the appeal shall be heard only on that question".

It was also held by the Apex court that 

(i) On the day when the second appeal is listed for hearing on admission if the High

Court is satisfied that no substantial question of law is involved, it shall dismiss the

second appeal without even formulating the substantial question of law;

(ii) In cases where the High Court after hearing the appellate is satisfied that the

substantial question of law is involved, it shall formulate that question and then the

 appeal shall be heard on those substantial questions of

law, after giving notice and opportunity of hearing to the Respondent;

(iii) In no circumstances the High Court can reverse the judgment of the trial court

and the first appellate court without formulating the substantial question of law and

complying with the mandatory requirements of Section 100 Code of Civil Procedure".

in the matter of Nazir Mohamed Vs. J.Kamala and others, 2020 (3) RCR (Civil) 684 wherein after examination of precedents, it has been held:-

"32. To be "substantial", a question of law must be debatable, not previously settled

by the law of the land or any binding precedent, and must have a material bearing on

the decision of the case and/or the rights of the parties before it, if answered either

way."